Supreme Court orders for higher compensation for lands acquired for Hippargi Barrage project

New Delhi: The Supreme Court has ordered the Karnataka Neravari Nigam Ltd to pay enhanced compensation of Rs 4.5 lakh per acre for the irrigated land acquired in 2007 for construction of canals under the Hippargi Barrage project.

A bench of Justices B R Gavai and Sandeep Mehta said the appellant Shripal and another would also be entitled for all statutory benefits, interest and costs. 

Senior advocate Anand Sanjay M Nuli, appearing for the appellants sought enhancement of compensation for land.

In the case, the Special Land Acquisition Officer awarded compensation to the tune of Rs 1,31,263 per acre.

Upon an appeal, the Reference Court enhanced the compensation by fixing the market value of the land at Rs 3,00,000 per acre.

Karnaktaka Neravari Nigam Ltd challenged the decision before the High Court of Karnataka, Dharwad Bench. 

The appellant-claimants filed cross-objections seeking enhancement of compensation.

They said in another matter, the High Court had awarded compensation by fixing the market value at Rs 3,69,000 per acre along with statutory benefits for the irrigated lands.

The appellants also submitted on April 17, 2021, a single judge of the High Court of Karnataka awarded compensation at the rate of Rs 5,00,000 per acre in respect of lands which are covered under the notifications issued between 2004-2008 for the very same project.

Senior advocate Navin R Nath, representing the beneficiary Nigam claimed that in the said matter, the affidavit which was filed pertained to an acquisition of 2009, wherein the Reference Court had determined compensation at the rate of Rs 5,00,000 per acre.

In the case, the bench noted the respondents themselves have agreed to award the market value at the rate of Rs 3,69,000 per acre along with statutory benefits for the lands acquired under the notification of the years 2004-2005.

The court noted for the market value fixed in the years 2004-2005 at the rate of Rs 3,69,000 per acre, an escalation of 5 % per year has already been applied.

For the lands acquired in the year 2009, the market value had been fixed by the Reference Court at Rs 5,00,000 per acre and above, the court noted.

The lands of the appellants herein were acquired in the year 2007. 

"In this background, we feel that ends of justice would be met if the market value of the lands acquired from the appellants is fixed at Rs 4,50,000 per acre by modifying the order of February 2, 2018 passed by the High Court," the bench said.

The court, however, said the direction of the High Court to deny interest for the period of delay in filing the cross-objections would be sustained.